Enter your email Address

LevelUp Cuts Payment Fees for Merchants

PayPal integrating itself into existing merchant-acceptance technologies is just the first step in the company’s bid to become a competitive fifth network in the market.

PayPal also is attempting to conquer a small, but expanding mobile payments market where companies are still trying to figure out how to make a device more valuable than a card swipe and adding convenience. Enter Magento, an ecommerce platform that supports leading brands such as The North Face, Harbor Freight Tools, Papyrus, and Nike, which eBay acquired in 2011 for an estimated $180 million.

After months of piloting enhancements to Magento such as order-ahead features, PayPal is ready to roll out its next iteration product on a national scale. Incorporating features like order ahead will appeal to merchants in food and beverage categories and convenience and package stores. It should also spur further innovations from other companies that have targeted this segment like LevelUp, which arguably has a better cost basis than PayPal. In the final analysis, however, these companies still have to deliver transaction volume and prove they can expand outside of specific merchant categories and into the larger market.

From Mobile Commerce Daily:

The order ahead feature was piloted at a Jamba Juice location in Emeryville, CA, in January, giving the retailer’s customers a way to order ahead and with PayPal on their mobile device when they pick up their order (see story ). The feature also gives users of the PayPal app a reason to use it in store, an action PayPal is hoping to encourage.

Using PayPal’s iPhone app, Jamba Juice customers can locate the Emeryville store, tap on the order-ahead button and place their order. Users have the ability to add on items such as protein to their beverages and to substitute ingredients.Once users have placed an order, they can choose a pick-up time and pay using the PayPal app. Once they arrive at the store, users bypass the line and cashier and simply pick up their drink.